By the beginning of the XX century Russia was an agro-industrial country, and was even among the five most industrialized countries of the world. The most important areas of the economy were the alimentary and textile (almost the half of the industrial production). Due to the economic measures of the tsar's government (protective customs duties, gift of commands to factories) the heavy industry started developing also (machine building, building of railway stations, metallurgy, and low metallurgy).
Starting in 1893, the powerful industrial development continued till the end of the 90's, and played a great role in the consolidation of the Russian industry. The industrial production increased up to three times (especially the heavy industry). That increasing was due to the construction of railways, the state help, and by 1892 the length of the railways was almost 31000 km, and from 1893 to 1902 were built 27000 km.
By the beginning of the XX century the areas 'A' (the production of means of production) were giving a cost equaled to 40 per cent of the production. The development of different regions was not equally done. The mountain region of the south of Russia developed very quickly. From 1890 to 1899 the part of the extraction of iron increased from 21,6% to 57,2% and steel - from 24,3% to 51,8%. The production of iron and steel from 17,8% to 44%. The industry of Ural looked different - its part in the production of metallurgy reduced to 675 in the 70's to 28% in 1900.
The main characteristics of the Russian industry were the high concentration of the production. The use of forms of organization and technologies of massive production, foreign investments, state orders and subsidies allowed the creation of large enterprises. The great level of the concentration of the production is one of the reasons of the beginning in 80-90's of monopolization; by that time there were created many linked companies acting like consortiums (the union of fabricants, the railways union etc.)
By the second half of the 90's the linking of Russian banks with the industry started.
The high temps of 90's were essentially due to the economical policy of the minister of finances S.U. Vitte. The talented financial minister S.U. Vitte who was at the head of the ministry of finances promised Alexander III that he could make the Russia become a great industrial country without political reforms. In 1894 was created the wine monopole which increased the government incomes. The most important decision in the financial area was the financial reform of 1897.
In 1900 was the world economic crisis, which even touched the Russia, but its effects here were stronger than in any other country. In 1909 the crisis was so deep that till 1909 the industry had almost stopped in spite of the fact that the crisis was officially stopped in 1903.
During the period of the crisis 1900-1903 were closed more than 3000 societies in which were working 112000 people.
The death of small and medium enterprises boosted the process of unification of diverse enterprises.
The 1900-1903 crisis was a transition period and the beginning of association of banks with the industry. The government decided to help those banks which mostly suffered during the crisis and started the 'financial reorganization' to help enterprises.
At the beginning of the XX century the main area of the economy was agriculture, which was giving almost half of the national incomes and almost 78% of the population were engaged there (notes of 1897).
The biggest bread producer was a peasant's farm which gave almost 88% of the national brut product, 50% of goods; 1/6 of all well-to-do peasant farms were giving 38% of gross revenue and 34% of bread.
Among all the world leading countries only Russia and the USA were able to do intensive agriculture and animal husbandry due to having free spaces; therefore the particularity of the historical development of Russia was its agriculture; the gap between the agriculture and the industry was increasing and the development was stopped by the manifestation of the rights of the lower classes. |
History 